ofstrat TABLEOFCONTENTS
1.1)Models egiccha nge.
1.2)Relevanceofmodelsofstrategicchangeto
organisations
1.3)Strategicinterventiontechniquesin
organisations
2.1)Needforstrategicchangeinan
organization..
2.2)Factorsdrivingtheneedforastrategicchangeinan
organization
2.3)Resourceimplicationsoftheorganizationnotrespondingto
strategicchange
3.1)Systemstoinvolvestakeholdersintheplanningofchange
3.2)Changemanagementstrategywithstakeholders
3.3)Evaluationthesystemsusedtoinvolvestakeholders
3.4)Strategyformanagingresistancetochange
4.1)Modelforchange
4.2)Plantoimplementamodelforchange
4.3)Measurestomonitorprogress
Conclusions
References
INTRODUCTION
LloydsTSBisaleadingbankinggroupintheUKbasedfinancialservicesprovidinga
rangeofbankingandfinancialservices.ITwasformedinJanuary2009followingthe
acquisitionofHBOSandoperatinganinternationalbusinesswithaglobalfootprintof
over30countries.Groupisatopfinancialinstitutionwithitsheadofficelocatedin
London.TheinstitutionhasitsoperationsallacrosstheworldincludingEurope,US
Asia,andMiddleEast.Thecompanymakesavailableanextensivearrayoffinancial
productsaswellasservicesintheUKaswellasoutside.Theinstitutionwas
establishedintheyear1995throughthemergerofLloydsBankandtheTrustee
SavingsBank(TSB).
LloydsTSBispresentlythefifthbiggestbankinggroupintheUK.
LloydsTSBGroup'sfunctionsarecoordinatedintothreemajorbusinesses.Theyare
InsuranceandInvestments,UKRetailBankingandMortgagesaswellasWholesale
andInternationalBanking.Bytheendoftheyear2006,GroupAssetsamountedto
343,598million,andtheestablishmenthadover63,000staff.LloydsTSBrenders
servicetoalargenumberofcustomersinawidearrayofmarkets.
Thehistoryofthecompanygoesbackto1995whenitwasfounded.Itcameinto
existencewhentheTrusteeSavingsBankandtheLloydsBankconsentedtofuse
theiroperations.ThuswasbornthesecondlargestbankintheUKintermsofmarket
capitalisationsecondtoonlyHSBCHoldings.Lloydsbankwasoneoftheoldest
institutionsintheUKthatwasestablishedbySampsonLloydandJohnTaylor.Itwas
formedintheyear1765inBirmingham.Aseriesofpurchasesandacquisitionsmade
LloydstobecomeoneofthelargestofthefourbanksintheUK.
AsaconsultantforLloydsTSBmyreporthereistodevelopandimplement
organisationalstrategicchangeinvolvingallbanksstakeholders.Iwillalsoinclude
andexplainnecessaryconceptsallocatingresourcestochangemanagementand
alsoassesswhatimpactthefinancialcrisishavehadonretailbankingandtoasses
otherdiversofchange.LloydsTSBrequirestheneedforastrategicchangeand
otherimplicationsforLloydsTSB.
AlsoIwillbejustifyingamodelforchangeforLloydsTSBintodayseconomic
environmentwithconsiderationforhowtheimplementationofthechosenmodelfor
changecouldbeplannedandalsotojustifymeasuresintomonitoringtheprogressof
LloydsTSB.
Task1)
1.1
)DiscussmodelsofstrategicchangethatcanbeappliedtoLloydsTSB
In1984Kolbpublishedhislearningstylemodel.Kolbsmodeloflearningstyleshas
fourdistinctlearningstyleswhicharefurtherbasedonfourstagelearningcyclesalso
knownaslearningcycles.
BriefdescriptionofKolbsmodelofindividualchangeisasfollows
Diverging(feelingandwatchingCE/RO)Thesepeopleareabletolook
atthingsfromdifferentperspectives.Theyaresensitive.Theyprefertowatch
ratherthando,tendingtogatherinformationanduseimaginationtosolve
problems.Theyarebestatviewingconcretesituationsseveraldifferent
viewpoints.Kolbcalledthisstyle'Diverging'becausethesepeopleperformbetter
insituationsthatrequireideasgeneration,forexample,brainstorming.Peoplewith
aDiverginglearningstylehavebroadculturalinterestsandliketogather
information.Theyareinterestedinpeople,tendtobeimaginativeandemotional,
andtendtobestronginthearts.PeoplewiththeDivergingstyleprefertoworkin
groups,tolistenwithanopenmindandtoreceivepersonalfeedback.
Assimilating(watchingandthinkingAC/RO)TheAssimilatinglearning
preferenceisforaconcise,logicalapproach.Ideasandconceptsaremore
importantthanpeople.Thesepeoplerequiregoodclearexplanationrather
thanpracticalopportunity.Theyexcelatunderstandingwideranging
informationandorganisingitaclearlogicalformat.Peoplewithan
Assimilatinglearningstylearelessfocusedonpeopleandmoreinterestedin
ideasandabstractconcepts.Peoplewiththisstylearemoreattractedto
logicallysoundtheoriesthanapproachesbasedonpracticalvalue.These
learningstylepeopleareimportantforeffectivenessininformationand
sciencecareers.Informallearningsituations,peoplewiththisstyleprefer
readings,lectures,exploringanalyticalmodels,andhavingtimetothink
thingsthrough.
Converging(doingandthinkingAC/AE)PeoplewithaConverging
learningstylecansolveproblemsandwillusetheirlearningtofindsolutionsto
practicalissues.Theyprefertechnicaltasks,andarelessconcernedwithpeople
andinterpersonalaspects.PeoplewithaConverginglearningstylearebestat
findingpracticalusesforideasandtheories.Theycansolveproblemsandmake
decisionsbyfindingsolutionstoquestionsandproblems.Peoplewitha
Converginglearningstylearemoreattractedtotechnicaltasksandproblemsthan
socialorinterpersonalissues.AConverginglearningstyleenablesspecialistand
technologyabilities.PeoplewithaConvergingstyleliketoexperimentwithnew
ideas,tosimulate,andtoworkwithpracticalapplications.
Accommodating(doingandfeelingCE/AE)TheAccommodating
learningstyleis'handson',andreliesonintuitionratherthanlogic.Thesepeople
useotherpeople'sanalysis,andprefertotakeapractical,experientialapproach.
Theyareattractedtonewchallengesandexperiences,andtocarryingoutplans.
Theycommonlyacton'gut'instinctratherthanlogicalanalysis.Peoplewithan
Accommodatinglearningstylewilltendtorelyonothersforinformationthancarry
outtheirownanalysis.Thislearningstyleisprevalentandusefulinrolesrequiring
actionandinitiative.PeoplewithanAccommodatinglearningstyleprefertowork
inteamstocompletetasks.Theysettargetsandactivelyworkinthefieldtrying
differentwaystoachieveanobjective.
AmericanJohnPKotter(b1947)isaHarvardBusinessSchoolprofessorand
leadingthinkerandauthoronorganizationalchangemanagement.Kotter'shighly
regardedbooks'LeadingChange'(1995)andthefollowup'TheHeartofChange'
(2002)describeahelpfulmodelforunderstandingandmanagingchange.Each
stageacknowledgesakeyprincipleidentifiedbyKotterrelatingtopeople'sresponse
andapproachtochange,inwhichpeoplesee,feelandthenchange.
.
AccordingtoKotter'seightstepschangemodelcanbesummarisedas:
1. Increaseurgencyinspirepeopletomove,makeobjectivesrealand
relevant.
2. Buildtheguidingteamgettherightpeopleinplacewiththeright
emotionalcommitment,andtherightmixofskillsandlevels.
3. Getthevisionrightgettheteamtoestablishasimplevisionandstrategy,
focusonemotionalandcreativeaspectsnecessarytodriveserviceand
efficiency.
4. CommunicateforbuyinInvolveasmanypeopleaspossible,
communicatetheessentials,simply,andtoappealandrespondtopeople's
needs.Decluttercommunicationsmaketechnologyworkforyouratherthan
against.
5. EmpowersactionRemoveobstacles,enableconstructivefeedbackand
lotsofsupportfromleadersrewardandrecogniseprogressand
achievements.
6. CreateshorttermwinsSetaimsthatareeasytoachieveinbitesize
chunks.Manageablenumbersofinitiatives.Finishcurrentstagesbefore
startingnewones.
7. Don'tletupFosterandencouragedeterminationandpersistenceongoing
changeencourageongoingprogressreportinghighlightachievedand
futuremilestones.
8. MakechangestickReinforcethevalueofsuccessfulchangevia
recruitment,promotion,andnewchangeleaders.Weavechangeintoculture.
Kottersuggeststhatforchangetobesuccessful,75%ofacompany'smanagement
needsto"buyinto"thechange.Inotherwords,LloydsTSBwouldhavetoreallywork
hardonStepOne,andspendsignificanttimeandenergybuildingurgency,before
movingontothenextsteps.
Tuckmansmodelofteamchange
Forming:
Groupmemberslearnabouteachotherandthetaskathand.
Indicatorsofthisstagemightinclude:Unclearobjectives,Uninvolvement,
Uncommittedmembers,Confusion,Lowmorale,Hiddenfeelings,poorlistening,etc.
Storming:
Asgroupmemberscontinuetowork,theywillengageeachotherin
argumentsaboutthestructureofthegroupwhichoftenaresignificantlyemotional
andillustrateastruggleforstatusinthegroup.Theseactivitiesmarkthestorming
phase:Lackofcohesion,Subjectivity,Hiddenagendas,Conflicts,Confrontation,
Volatility,Resentment,anger,Inconsistency,Failure.
Norming:
Groupmembersestablishimplicitorexplicitrulesabouthowtheywill
achievetheirgoal.Theyaddressthetypesofcommunicationthatwillorwillnothelp
withthetask.Indicatorsinclude:Questioningperformance,Reviewing/clarify
objective,Changing/confirmingroles,Openingriskyissues,Assertiveness,Listening,
Testingnewground,Identifyingstrengthsandweaknesses.
Performing: Groupsreachaconclusionandimplementthesolutiontotheirissue.
Indicatorsinclude:Creativity,Initiative,Flexibility,Openrelationships,Pride,Concern
forpeople,Learning,Confidence,Highmorale,Success,etc.
Adjourning: Asthegroupprojectends,thegroupdisbandsintheadjournment
phase.ThisphasewasaddedwhenTucumnandJensen'supdatedtheiroriginal
reviewoftheliteraturein1977.
Task1.2)
Evaluatetherelevanceofmodelsofstrategicchangetoorganisationsinthe
currenteconomy.
AsmentionedearlierinKottersmodel,achangeneedstobetakenasprocess.It
startswithcreatingurgencyinanorganizationandformingaclearvisionwhichin
turnleadstoachievingtheirgoalsandobjectives.Byproperlycommunicatingthe
visionandtakingeverymemberoftheorganizationinLloydsTSBthechange
becomesmoreviableandfeasible.Itrequiresacompleteplanningatthe
organizationallevel.Sincethischangeisgoingtoimpactoverallorganization.
Everyoneintheorganizationindirectlyordirectlywillbeaffectedbythischange.
Soaclearvisionneedstobecommunicatedwellamongthestaffandmanagement.
Inordertoremovetheobstaclesastrategyneedstobeformulated.Thechange
needstobeplannedinsuchawaythatthegoalsarekeptinmotivationofstaffalive.
Andwitheverysuccessanewplanshouldbeformulatedtotakethatchangeahead.
Whilediscussingaboutorganizationalchangemodelwewouldntbeabletogiveless
importancetoteammodelandtoindividualones.Asitsteamwhichinitiatesand
facilitateschangeinanorganizationsoithasamajorrelevancebecauseiftheteam
doesntworkandfailsinitsprojectthenthechangecantreachatanorganizational
levelandhencecausingthefailureofchangeprocess.Weshouldalsoconsiderthe
individualmodelofchangeaswellasthechangeissuccessfulwhenittakesevery
individualandacceptsthechangeandchangesaccordingly.Sointodayseconomy
organisationhastotakenaccountallthethreemodelsofchangewhilemakeand
decidingastrategicchange.
1.3)
Assessthevalueofusingstrategicinterventiontechniquesinorganizations
Strategicinterventiontechniqueshelpsorganisationtofindtheirowncore
ofstrengthsandishelpfuldoingtheprocessofchange.Organisationsneedtobe
changingconsciousandhenceforththeyneedtodevelophumanresource
techniquestoinvolveeveryoneandpreparethemforthechange.Byadopting
strategicinterventiontechniquesmodel,LloydsTSBcanbuildbridgesofsuccess
andadvancementwithallworkerscooperatingasteammatesaswellthemanagers.
SomeoftheorganisationdevelopmentInterventiontechniquesare:
Roleplaying:Itisbasicallyacontingencyplantoprepareagroupinabsenceofthe
superiorortheotherteammates.Roleplayingisaprescribedwayofbehaving.
TeamDevelopment:Itisregardedastheveryfoundationofdevelopingworkgroup
maturityandeffectiveness.Settinggoals,prioritiesandtoexaminethererelationship
betweenamongthepeopledoingworkarefewoftheobjectivesofteam
development.
Surveyfeedback:Nadler(1997)arguedthatrecipientsmustseefeedbacksasa
stimulusforactionratherthanfinalstatement.Informationshouldbegatheredby
personalinterviewsorsurveyquestionnairesandshouldbeanalyzedandbeused
effectively.
Intergroupproblemsolving:Jointmeetingsshouldbeheldregularlytoavoidinter
groupconflicts.Duringsuchmeetingsmembersareallowedtospeakanddiscuss
freelyandsortouttheirdifferences.
ProcessConsultation:Theprocessinvolvedshouldbethoroughlydiscussedand
consultedwitheverypartyconcernedwith.Itisgenerallydonetoendtheconflicts
amongdifferentteamsandpeopleinvolvedandtopreparethemforachange.
Task2
2.1)
examinetheneedforastrategicchangeinanorganization
NeedforaStrategicchangeinLloydsTSB
AsLloydsTSBhasestablishedandgrown,thebankstarteddiversifyingitsbusiness
byenteringintonewproductandmarketsegments.Thesignificantprogressbeing
madehasledthemtoexpectsynergiestoa2billionannualisedrunratebytheend
of2011.Currentlythereareissueswiththemanagementrelatedwhichcannotbe
resolvedwiththecurrentstage.Thelackofdividendandcouponpaymentshas
causedmanyofthebanksstakeholdersandshareholders.Theyneedtowork
diligentlyinrestoringtheabilitytopaybackdividendsandcreateshareholdervalue.
ThebankinginstitutionsincludingLloydsTSBneedtomeettheirobligationsof
serviceandintermediationandareresponsibleandproactiveconduitsofchannelling
savingsintoproductiveenterprisesandhouseholds,theyneedtoregaintheirtrustin
thebankingmarketandbeabletoensurethattheiractionsandanewplanchanges
everything.TheneedforaStrategicManagementOfficewithstaff
leadership/facilitationresponsibilityforthechangeinsupportoftheCEO.Theyalong
withaStaffSupportofotherkeystafffunctionsarekeytothesuccessorfailureof
thedesiredchanges.Justlikeanyothermajorfunctioninanorganization,the
changefunctionneedstobestaffedTheneedforastrategicchangeinLloydsTSB
willcarryoutdynamicorganizationalchangestoestablishastructurebettersuitedto
afinancialinstitutionthatisexpandingitsbusinessactivitiesonaglobalscale;all
businesspromotionanddevelopment(customerbusinesspromotion,investment
banking,
Transactionbanking,markets,etc.)Willbecarriedoutonabankwidescaleatthe
globallevel.
2.2)
Assesthefactorsthataredrivingtheneedforastrategicchangeinan
organization
politicalgovernmentishoundingthebankingindustrybecauseoftheimageif
politiciansdidnotandthattheydidcausedthefincrisis;futurepossibleproblems
includestricterregulationsandbreakingdownthepowerofthebankingsector.The
governmentwouldalsobethinkingofawaytogetbacktaxpayers'moneythatthey
investedintheseinstitutionsandwhattodowiththebanksthathavealreadymerged
ormadeacquisitionswithotherbanks
environmentalBanksareestablishedwithlegalboundaries.Legaleffectsinclude
legislation,followupcentralbank.Forexample,in2008UKgovernmenthasmadea
rescueplanfortheretailbanksafterthecreditcrunch..Underthisrescueplan,short
termloansupto200billionforBankofEnglandandupto250billioninloan
guaranteeatcommercialratesfromgovernment.Alsoaccordingtothisrescueplan,
fewofleadingbanksincludingLloydsTSB,theywillincreasethecapitalby25
billionasanaggregateincrease.
Socialpeoplearelesstrustingofbanksandthepublicnowseebanksaspower
andmoneyhungryinstitutionswhomessedupsocietydoubtit'salltrue.Publicityis
notallthatgoodeither;bankbonusesaretaxedat50%inordertodeterpaying
them,butbanksarestillpayingtheminordertotrytokeeptheirstarplayerswithin
theirorganisation.
Economichigherinterestratesbecauseofthehighdefaultratesoverthelastfew
years.Liquidityofbanksisaworrybutnothingishappeningintheinterbankmarket.
atthesametime,banksaretryingtobuildtheirbalancesheetsbackup.Recentlywe
allhavereceivedpostofloanstheyareofferingusatratesashighas22%.Nomuch
businessgoingon.Sharepricesarerecovering,butslowlyliketherestofthe
financialmarket.Bankingindustriesarefinancialservicesector.Neverthelessit
influencedbytax,interestrateofthecentralbank,inflationrate.Retailbanksborrow
moneyfromthecentralbanksborrowmoneyfromthecentralbankbasedoninterest
rateandtheyprovideloantocustomersandthedifferenceoftheinterestrateof
borrowingandlendingmoneyistheirincome.
TechnologytherehavebeenthingslikethePINentrydevice,onlinebanking,etc.
nothingallthatnew.Therehavebeencreditcardsissuedbeforetheboom.toget
morebusiness,whenconfidenceinthefinancialindustryisrestored.Thingsare
ratherslowintheseareasaswell,exceptforthefactbanksarenowopeningon
Saturdaysaswellasonweekdays.Technologyinfluencesthebankingindustriesfor
marketresearch,customerservice,internetbanking,dataprocessing,customer
relationshipmanagementandsoon.Peoplenowcanmaketransactionsfromallover
theworldbytheinternetbanking.
SWOTANALYSIS
Strengths
LloydsBankingGroupisthelargestUKretailbank
ItisanestablishedUKmarketplayer,withastrongbrandandtrustedreputation.
Weaknesses
Itsmultibrandapproachtothemarketmayneedtobeaddressedasoperatingunder
anumberofbrandnamesrequiresupkeepofbrandidentities,whichiscostly,and
thebankisalreadyunderpressuretocreateacapitalinjectionthroughthesaleof
branches.
Thebanknolongerhascompletecontroloveritsdestiny,duetotheUK
governments43%stake.
Opportunities
Lloydslargeexistingcustomerbaseofferscrossandupsellopportunitiesforthe
company,particularlyforproductsthatprovidearegularannuityincome.
Threats
Thesizeofthebankscustomerbasemaythreatenitsabilitytodeliveronits
strategicintenttoformdeepcustomerrelationships
ThecompanysmainmarketistheUK,whichisintenselycompetitiveintermsof
financialservicesproviders
Atpresent,themainfinancialservicesprovidersintheUKareallpursuingthesame
customers,makingrivalryamongstplayersevenmoreintense
2.3)
Assesstheresourceimplicationsoftheorganizationnotrespondingto
strategicchange.
Therewillbegreatimplicationsonthebankandoperationsiftheresourcesdont
respondtotheplanningchange.
Lackoftrainingandinfrastructurewillcausedifficultyintakingthe
implementationforwardandmayultimatelybecomethecauseoffailure.
IFthebusinessheaddoesntinvolvefullyinthedecisionmakingthenthe
implementationperiodwillstretchanditwillnotbeabletomeetthedeadlines
andthegoliveperiod.
Iftheteammembersoftheimplementationteamarenotfullydedicatedthen
itwillbecomedifficultfortheexternalconsultantstoprocessthesystem
whichinturnwillcauseissuesforthebankinalongterm.
IFthemanagementandthestuffdonttakepropertrainingtheywillnotbe
abletocompletetheirdailytasksontimewithoutanyissues.Thismayalso
complicatethebusinessprocessinthebank.
Lloydsbankcouldloseitscustomersiftheycontinuehavinglateresponses
fromtheirendusers.
Failureofimplementationwillcauseahighlossattheorganization
Task3
3.1)Developsystemstoinvolvestakeholdersintheplanningofchange
Theactivitieswhichneedtobeundertakentoinvolvethesestakeholders
inplanningchangeare:
Devisingacommunicationstrategywhichincludes:Meetings,Emailing,Face
tofaceinteraction,interview,VotingandQuestionnaire
Sendformalinvitationtoallthetopmanagementinvolvingallthebusiness
headsforthemeetingonthediscussionofbringingstrategicchangein
organisation.
Formalpresentationtothemajorstakeholdersontheneedsandfactorsfor
bringingthechangeinorganisation.
Preparetheminutesofmeetingandforwardittotheentiremembers
requestingfortheirfeedbacks
Oncefeedbacksarereceived,planastrategyresolvetheissuesraisedand
convincethemfortheneedofchange.
Aformalteamneedstobeformedandachangeleadershouldbechosento
initiatethechange.Theteamshouldhavemembersrepresentingdifferent
businessprocesses
3.2)Developachangemanagementstrategywithstakeholders
Awidelyacceptedtheoryofmanagementsuggeststhat,withinagroupindividual
behaviourandemotionalresponsestoagivencircumstancesaredifferentfromeach
others.Similarlyresponsestoorganizationalchangesaredifferent,someareearly
adoptersandmajorityofthestakeholdersarereluctanttoacceptthechangewhile
therealwayssomewhoareresistanttochange.
Keepingthesestakeholdersinconsideration,astrategyneedstobeformulated.We
areconsideringcommonacceptedstrategiesofmanagement,theyareasfollows:
LeverageStrategies:Thisisgenerallyappliedtotheearlyadopterswith
significantinfluencetodeveloptheirsupportandutilizetheirinfluenceto
acceleratethechangeamongthereluctantmajority.
Engagementstrategies:Thefocusisontheinfluencersofthereluctant
majorityandthegoalistoconvertthemtoearlyadoptersandisleveragetheir
influenceamongthosewithlessinterestandcommitments
Containmentstrategies:Thesestrategiesarebasicallytotargetthose
resistantlaggardswhoareunabletoadaptyetbecauseoftheirhighskills,
knowledgeandabilitiestheystillcontributetothechange.
OutplacementStrategies:Thevirulentandinfluentialresistantlaggardsare
primecandidatesforoutplacement.Thesestakeholdersaregivenanearly
opportunitytodemonstratetheiracceptanceandcompliancewiththechange
processbut,failingthat,theyfaceunambiguousconsequences
3.3)Evaluatethesystemsusedtoinvolvestakeholdersintheplanningof
change.
Byimplementinganystrategicchangethatinvolvesthetopmanagementandalso
theendusers,soaproperstrategyneedstobeformedtoinvolveeveryoneinthe
changeprocess.Changeprocesscaninitiateonlyifthestakeholdersarewell
communicatedandeducatedaboutthenecessitiesofbringingthechange.They
shouldbewellinformed,educatedandbeengagedinthedecisionmaking.Their
feedbacksshouldalwaysbetakeninaccount,andallthiscanbepossibleonlyby
devisingapropercommunicationstrategy.Everystakeholderinvolvedshouldalways
bekeptinloopontheprogressoftheproject.Stakeholdersshouldalwaysbeinvited
whenakeydecisionneedtobetaken.Acceptanceoftheirfeedbacksmakesthem
feelmotivatedandengagedandthentheybecomethepartoftheproject.
Presentationtothestakeholdersshouldalwaysbegivenonthecurrentandaccurate
informationtokeepthemupdatedandtoavoidthethoughtsbythemofbeing
neglected.
3.4)Createastrategyformanagingresistancetochange
Resistancetochangeispartofchangeprocess.Itissomethingwhichcanhaveboth
positiveaswellnegativeimpactsontheorganisation.Kotter&Schlesinger(1979)
explainedtheimportanceofstrategytohandletheresistanceintheorganisation.As
pertheirtheory,theprinciplesare:
EducationandCommunication:Byproperlyeducatingandcommunicatingwiththe
concernedstakeholdersaboutthechange,theirmisconceptionsandconfusionscan
besortedoutwithoutwhichtheyarefullofquestionsandworries.Peopletendto
acceptthechangeoncetheybecomeawareofthechange.
Participationandinvolvement:Astrategyneedtobedevisedtofacilitatethe
participationandtheinvolvementofthestakeholdersinthechangeprocess.This
givesthemmotivationandsenseofinvolvementmakesthemfeelpartofthechange
towhichtheydonttrytobecomearesistance.
Negotiationandagreement:Whenanorganisationgoesforastrategicchange,then
lotsofthingsareatstake.Anditbecomesequallyimportanttomovetowardschange
byforminganagreementamongallthemembersandthemanagementthrough
propernegotiations.
Facilitationandsupport:Byfacilitatingandsupportingthepeoplewhoareinitiating
andmanagingthechangeprocess,themotivationlevelofpeopleareincreasedand
booststheirconfidencewhichinturnbecomesexampleforothersaswelltobeapart
ofchangeandtakingitforward
AccordingtoMcKinseys7smodel
The7Smodelisastrategicmodelthatcanbeusedforanyofthefollowingpurposes:
Organizationalalignmentorperformanceimprovement
Understandingthecoreandmostinfluentialfactorsinanorganizations
strategy
Determininghowbesttorealignanorganizationtoanewstrategyorother
organizationdesign
Examiningthecurrentworkingsandrelationsanorganizationexhibits
Themodel,madefamousbytheMcKinseyconsultingcompany,isgoodfora
thoroughdiscussionaroundanorganizationsactivities,infrastructure,and
interactions.
Themodelanditsusage
Hereisthe7Smodelthatportrayssevenelementsofanorganization.
Idefinetheelementsasfollows:
StrategyThisistheorganizationsalignmentofresourcesandcapabilitiestowin
initsmarket.
StructureThisdescribeshowtheorganizationisorganized.Thisincludesroles,
responsibilitiesandaccountabilityrelationships.
SystemsThisisthebusinessandtechnicalinfrastructurethatemployeesuseona
daytodaybasistoaccomplishtheiraimsandgoals.
SharedValuesThisisasetoftraits,behaviours,andcharacteristicsthatthe
organizationbelievesin.Thiswouldincludetheorganizationsmissionandvision.
StyleThisisthebehaviouralelementstheorganizationalleadershipusesand
cultureofinteraction.
StaffThisistheemployeebase,staffingplansandtalentmanagement.
SkillsThisistheabilitytodotheorganizationswork.Itreflectsintheperformance
oftheorganization.
Task4
4.1)Developappropriatemodelsofchange
AccordingtoPorscisfivebuildingblocksADKARmode
Prosci'sADKARModelisanindividualchangemanagementmodel.Itoutlinesthe
fivebuildingblocksofsuccessfulchange,whetherthatchangeoccursathome,inthe
communityoratwork.Thename"ADKAR"isanacronymbasedonthefivebuilding
blocks:
AAwarenessoftheneedforchange
DDesiretoparticipateandsupportthechange
KKnowledgeonhowtochange
AAbilitytoimplementrequiredskillsandbehaviours
RReinforcementtosustainthechange
ADKARisanindividualchangemanagementmodeldescribinghowoneperson
makesasuccessfulchange.Effectivechangemanagementrequiresanindividual
changemanagementmodelasitsfoundation.Anindividualchangemanagement
modeldescribes"theends,"whileanorganizationalchangemanagementmodel
describes"themeans"forexample,Prosci's3PhaseProcessof1)Preparingfor
change,2)Managingchangeand3)Reinforcingchangeoutlinesthespecificactions
thatachangemanagementresourceorteamwouldtakeforaparticularprojector
initiativetohelpindividualsbuildAwareness,Desire,Knowledge,Abilityand
Reinforcement.ThistutorialpresentssixapplicationsofProsci'sADKARModel.
Application1:Makingsenseofchange
Application2:Guidingchangemanagementplans
Application3:Measuringprogress
Application4:Diagnosinggaps
Application5:Developingcorrectiveactions
Application6:Enablingmanagersandsupervisors
Application1:Makingsenseofchange
Changeisdifficultandcomplextounderstand.However,manyinthefieldhave
providedtechniquesforbreakingitdownintophasestohelpmakesenseof
change.Intheearly20thcentury,theanthropologistArnoldVanGennepfirstbroke
changedownintothreedistinctphaseswhilestudyinggroupsaroundtheworldand
theritesofpassageinthoseculturespublishedinhis1909workTheRitesof
Passage.KurtLewin(ResolvingSocialConflicts,1948)andWilliamBridges
(Transitions,1980)bothdevelopedtheideaofthreedistinctphasesofchange,
placingconsiderablefocusonthedifficultyindividualsfaceinsteppingoutofthe
currentstate.Proscisusesthisframeworkbydefiningthecurrentstate,thetransition
stateandthefuturestatealongwiththeimplicationsofeachofthestates.By
separatingachangeoutintohowthingsaredonetoday(thecurrentstate),how
thingswillbedone(thefuturestate)andhowtomovefromthecurrentstatetothe
futurestate(thetransitionstate),changecanbemoreeffectivelymanaged
asspecifictacticscanbedevelopedforeachofthestatesofchange.
Prosci'sADKARModeltakesthenextstep.Itmovesbeyondstatesofchangeas
acontextcurrent,transition,futureandprovidesmoredefinitionabouthowone
personmovesthroughthechangeprocessindividually.Tomoveoutofthecurrent
state,anindividualneedsAwarenessoftheneedforchangeandDesireto
participateandsupportthechange.Successfullymovingthroughthetransitionstate
requiresKnowledgeonhowtochangeandtheAbilitytoimplementtherequiredskills
andbehaviours.Inthefuturestate,thatAbilityisutilizedandReinforcementis
requiredtosustainthechange.
TheadditionaldetailthatADKARprovidestoageneralmodelofchangeiswhyit
"justmakessense"forchangemanagementpractitioners.Onceexposedtothe
ADKARModel,itbecomesveryeasytobreakdownchangesgoingonaroundyou
intothefivebuildingblocksandthenexamineeachoftheblocksinmoredetail.
ADKARgivesmoredetail,attheindividuallevel,forunderstandingtheprocessof
change.ADKARletsyoumakesenseofchangeattheindividuallevel.
Application2:Guidingchangemanagementplans
InProsci's3phasemethodologyandProsci'scertificationprogram,ADKARisused
toguidechangemanagementplans.Changemanagementplansarefamiliartomost
ofusacommunicationplanandatrainingplanaretypicalcomponents,evenwhen
thereisnotaformalchangemanagementstructureinplace.BasedonProsci's
research,therearefivekeyplansthatarepartofaneffectivechangemanagement
approach:Communicationplan,Sponsorshiproadmap,Coachingplan,Trainingplan,
andResistancemanagementplan(readmoreaboutthefiveleversofchange
management).Thesefiveplansoutline"whatwearedoing"fromachange
managementprofessional'sperspective.
ADKARispowerfulbecauseitadds"whatwearetryingtoachieve"totheequation.
ADKARisanoutcomeorientedmodelitdescribesthebuildingblocksanindividual
musthavetomakeachangesuccessfully.Assuch,itprescribesthegoalorresult
thatachangemanagementprofessionalistryingtoachievewhentheydevelopa
changemanagementplan.Forexample,thinkabouthowthesethreechange
managementplansrelatetoADKAR:
Whyarewecommunicating?TobuildAwarenessoftheneedforchangeorto
provideReinforcementtosustainthechange.
Whyissponsorshipsoimportantfromseniorleaders?Becauseitcontributes
toAwarenessoftheneedforchangeandbuildsDesiretoparticipate.
Whyareweprovidingtraining?BecauseindividualsneedKnowledgeonhow
tochangeandAbilitytoimplementtherequiredskillsandbehaviors.
Anyactivityorinterventiononthechangemanagementfrontshouldhaveasitsfocus
oneoftheADKARbuildingblocks.The"means"ofchangemanagementarethe
customizedplansdevelopedwhenapplyingastructuredorganizationalchange
managementprocess.The"ends"ofchangemanagementarethesuccessful,
individualtransitionsmadebyeachemployeewhosedaytodayworkisimpactedby
theprojectorinitiative.Inguidingchangemanagementplans,ADKARanswers
the"whatwearetryingtoachieve"questionforthemanyactivitiesthat
changemanagementprofessionalsundertakeinsupportofaprojector
initiative.
Application3:Measuringprogress
Howwillthemeasureofchangemanagementapproachbeeffective?"LloydsTSB
cancertainlymeasurechangemanagementactivitiesbyconsideringmanyfactors
likeexamplehowmanyemployeeshavebeentrained?Butsimplymeasuring
activitiesdoesnotletusknowiftheactivitiesarehavingtheintendedeffects.
ThisiswhereADKARcancomeintoplayasameasurementinstrument.Since
ADKARdescribestherequiredelementsofasuccessfulchange,itcanbeapowerful
measuringsticktoevaluateifchangemanagementactivitiesarehavingthedesired
results.Forinstance,afteramajorcommunicationeffortfocusedonsharingtheneed
forchangeandtheindividualandorganizationalmotivatorstosupportthechange,
wecouldconductanassessmenttoevaluatethelevelsofAwarenessandDesire.
Thistypeofassessmentindicateshowwellourchangemanagementactivitiesare
beingreceivedbytheemployeeswhoareimpactedbythechange.
Periodicallythroughoutthelifecycleofachange,ADKARcanbeusedtogaugehow
wellemployeesaremakingtheirownpersonaltransition.And,intheend,itiseach
individual'ssuccessfultransitionwhichresultsintheprojectdeliveringresultsand
providingvaluetotheorganization.Asamodelofsuccessfulindividualchange,
ADKARisapowerfulinstrumentformeasuringchangemanagementprogress.
Application4:Diagnosinggaps
Prosci'sADKARModelisalsoaneffectiveinstrumentforunderstandingwhya
changeisnotoccurring.Sinceitdescribestheessentialbuildingblocksofsuccessful
change,ADKARcanalsobeusedtounderstandwhyachangeisnothappening.Is
thechangefailingbecauseofalackofAwarenessoftheneedforchange?Isan
individualnotadoptingthechangebecausethereisnoDesiretoparticipate?Islack
ofKnowledge,AbilityorReinforcementstoppingthechangeprocess?
InProsci'smethodologyandProsci'scertificationprogram,anADKARassessmentis
usedtoidentifythebarrierpoint.Thebarrierpointisdefinedasthebuildingblockin
theADKARModelthatisnotsufficientforthechangetotakeplace.Byusingan
ADKARassessment,anADKARprofilecanbecreatedshowingwhichofthebuilding
blocksisthebarrierpointthefirstelementwithascorebelow"3".Belowaresome
graphsillustratingtheidentificationofabarrierpoint:
ADKARmissingelementthatisimpedingchangesuccessLloydsTSBcanthen
developtherightcorrectiveactionstohelptheindividualmakethechange.
Application5:Developingcorrectiveactions
Tryingtodevelopcorrectiveactionswithoutunderstandingtherootcauseforchange
failureisaproblem.First,itisdifficulttopicktherightcorrectiveactionsifyoudonot
understandwhythechangeisnotsucceeding.Theadage"ittakesaheapofswings
tohitanailinthedark"isapplicablehereunlessweknowwhyachangeisnot
working,wedon'tknowwhattodotoremedythesituation.
Second,itcanbediscouragingtoemployeesifyoupickcorrectiveactionsthatare
notfocusedontherightADKARbuildingblock.Ifanemployeeisnotmakinga
changeduetomissingReinforcement(forinstance,theyfeelthatthereisnobenefit
tostayingwiththenewwayofdoingtheirjob)andthechangemanagementteam
simplyprovidesmoretraining(aKnowledgeintervention),theemployeewillsimply
becomediscouraged.Ifanemployeeisconcernedaboutwhetherornottheyhave
theskillstobesuccessful(Knowledgeisthebarrierpoint),buttheteamfocuseson
morecommunicationabouttheneedforchange(anAwarenesstactic),theemployee
willgetfrustratedandmightbecomeevenmoreresistant.
SinceADKARdescribesthe"ends"italsohelpsustoselectthecorrect"means"if
achangeisnotworking.ADKARprovidesguidanceonhowtohelpanindividual
moveforwardinthechangeprocessonceweunderstandwhichoftheADKAR
elementsthegapis.
Application6:Enablingmanagersandsupervisors
ThefinalapplicationofADKARmovesbeyondtheworkofthechangemanagement
resourceorteam.Benchmarkingresearchtellsusthatanemployee'smanageror
supervisorisacriticalcomponentofthechangeprocess.Employeeslooktotheir
immediatesupervisorfordirectionandinformationrelatingtoachange.Managers
andsupervisorsareidentifiedasapreferredsenderofchangemessages.
Theirrelationshipwithdirectreportsmeansthattheyhaveaconsiderableamount
ofinfluenceonanemployee'sdecisionregardingachange.However,manygreat
managersandsupervisorshaveahardtimewhenitcomestoleadingtheir
employeesthroughchange.Leadingchangeis,inmanyways,anewandunique
competencythatsomemanagersandsupervisorshavenothadachanceto
develop.
Prosci'sbenchmarkingresearchindicatesfivedistinctrolesformanagersand
supervisorsintimesofchange:
1.
2.
3.
4.
5.
Communicator
Advocate
Coach
Liaison
Resistancemanager
Furthermore,resultsfromthe2009benchmarkingstudyindicatethattherolesof
"coach"and"resistancemanager"arethetwothatposethegreatestchallenge.One
ofthemosteffectivetoolsthatorganizationscanprovidetotheirmanagersand
supervisorstohelpthembecomegreatleadersofchangeisanunderstandingof
howemployeesexperiencethechangeprocess.Saidanotherway,teaching
managersandsupervisorsProsci'sADKARModelhelpsthembridgethegap
between"greatleader"and"greatleaderofchange".LearningtheADKARModel
andhowtouseitwithdirectreportsisoneofthefirststepstobuildingpersonal
changemanagementcompetenciesformanagersandsupervisors.
4.2)Plantoimplementamodelforchange
Toimplementchanges,weareusingthechangemanagementtheorygivenby
PettigrewandWhipp.TheFivemainfactorsofchangewhichweareconsideringare:
1.EnvironmentalAssessment:Corningneedstodefinecontinuousmonitoring
ofboththeinternalandexternalfactorsoforganisation
2.Humanresourcesasassetsandliabilities:Employeesshouldknowthatthey
areseenasvaluableandorganisationtruststhem.
3.Linkingstrategicandoperationalchange:Buildingofoperationactivitiescan
leadtonewstrategicchanges.
4.Leadingthechange:Bycreatingtherightclimateforchangeandbysetting
agendanotonlyforthedirectionofchangebutalsoforthevisionandvalues.
5.Overallcoherence:Achangestrategyshouldbeconsistentandprovidea
competitiveedge
Lloydstsbshoulddeviseanimplementationofchangebyincooperatingthesefive
factorsofchange.
Iftheimplementationofthechangemodelisnotwellplannedthenthechangewill
alwaysjeopardizeinbetweenandwillresultinfailure.Weareconsideringawidely
acceptedchangeimplementationplansuggestedbyJohnson,scholesand
Whittington.Thestepsareasfollows:
Togainsupportofkeydecisionmakersandfacilitatorsbyeducatingthemaboutthe
plannedchange
Makeafulldetailedplanwithschedulesandstagesofthechangeprocess,agreed
byallthebusinessmanagersandthedecisionmakers
Plantoobtainstaffscommitmenttomakingthestrategicplanwork
Involvingtheendusersintheownershipoftheplan
Rewardingtheendusersonplanssuccess.
Trainthestaffanddevelopnewskillswhichwillcontributetotheeffective
implementationofplan
Bykeepingcheckonandrecordtheprocess
Evaluatingthechangeatdifferentstages
Studyingtheweakareasandimprovingtheminspecifiedtime
Monitoringandreviewingtheprocessonweeklyandmonthlybasis.
.3)
4 Developappropriatemeasurestomonitorprogress
Monitoringprogressofchangeprocessisimportantasitmeasurestheactivitiesand
performancesrelatedtoit.Theprogresscanbemonitoredbydevisingvarious
performancemetricsandsystems,whichwillmeasurethesuccessoforganisation
towardsachievingthegoal.Wearesuggestingsomeofthewidelyaccepted
Performancemeasurementsystemstomonitortheprogress,theseare:
Balancescorecard
:itsaperformancemanagementapproachthatfocusonvariousoverall
performanceindicators, oftenincludingcustomer perspective,internal
businessprocesses,learningandgrowthandfinancials,tomonitorprogresstoward
organization'sstrategicgoals.
Benchmarking
: Itisbasicallylookingoutsidetheorganisationtoexaminehowothersachievetheir
performancelevelandtounderstandthe
processesinvolved.Benchmarkingfacilitateimprovedperformancewithin
theorganisationandthekeybusinessprocesses.Theobjectiveofbenchmarkingis
toideallyunderstandandevaluatethecurrentpositionofabusinessinrelationto
"bestpractice"andtoidentifyareasandmeansofperformanceimprovement.
Reviewsandevaluations
:Bysettingupmodelofweeklyandmonthly
reviewsoftheprocess,tokeepaneyeonthestatusoftheprogress.
Evaluationwillhelptofindouttheweaknessesorthestrengthsoftheproject.
180and360degreefeedback
:Bysettingupthismodeloffeedbackfortheindividualsandtheteam,management
willbeabletogettheactual
performanceandeffortsofeachandeveryresourceinvolvedwiththeproject.
SettingupMilestones
:Milestonesofprojectsaregenerallysettokeeptrackontheprogressoftheproject
Conclusion
BringingStrategicchangeinanorganisationhastobeawellplannedprocess.The
changecanonlybesuccessfulifalltheelementsofthechangeprocessare
consideredwhichinvolvesthestakeholdersintheplanningprocessandalso
strategiestohandletheresistance.Awellthoughtandimplementationprocess
shouldbeevolvedwithpropermeasurestomonitortheprogressofthechange
processwhichisERPimplementationhere
References
www.businessballs.com
www.12manager.com
www.llyodstsb.com
www.marcusball.com
www.changemanagment.com
www.kotterinternational.com
http://www.google.com/imgres?imgurl=http:// 563
MullinsL(2010)ManagementandOrganisationalBehaviour9Thed.Harlow:
FT/PrenticeHall